State oil refiners led by Indian Oil (IOC) on Tuesday cut gasoline prices for the first time in almost three years after an increase this month sparked protests by the opposition and some members of the ruling coalition. Gasoline prices in New Delhi have been cut by about 3.2% to 66.42 rupees ($1.30) per liter. The 2.22 rupee reduction more than wipes out the 1.80 rupee hike on Nov. 4 that spurred a public backlash, as well as criticism from politicians of all parties, given high infla- tion and a growing fiscal deficit. Inflation has now reached 9.73%, despite the cen- tral bank's move to raise interest rates 13 times over the past 18 months.
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